In terms of U.S. data, read GDP jumped 33.1% (annualised) in Q3 and beat expectations and was driven by a large surge in consumer spending. However, it is worth noting that this follows the record fall in Q2 and real GDP is still roughly 3.5% below pre-pandemic levels. Weekly unemployment claims came in at 751,000 for the week, still well above the longer-term average but at their lowest level since mid-March.


Eurozone GDP also beat expectations, but still has not recovered fully to the levels seen earlier in the year. Much of Europe is now under lockdown once again, with some weakness in the services sector gaining attention. Whilst the ECB did not make any changes at its meeting last week, the tone was quite dovish and there is a growing expectation that we will see a loosening of monetary conditions in December.


Positive vaccine news from AstraZeneca was overshadowed by the accelerating case count as Europe enters the winter period. Yields (which move inversely to price) on core eurozone government bonds fell, as France has reintroduced national lockdowns with the U.K. to follow later in this week. CLICK HERE